Maersk Resumes Suez Canal Sailings, Signaling Hope for Normalized Trade Routes

Maersk is set to resume its sailings via the Red Sea and Suez Canal this month, ending two years of disruptions caused by Houthi rebel attacks. The Danish shipping group’s decision comes as the regions stabilize, potentially easing freight rates and impacting global trade routes.

Maersk will resume its sailings through the Red Sea and Suez Canal this month, the company announced on Thursday. This marks an important move to end two years of disrupted global trade caused by Houthi rebel attacks. The Danish shipping giant saw its share price drop by over 5% following the announcement, likely due to expected lower freight rates as vessels return to the shorter Suez route.

Following the Houthi attacks in the Red Sea in late 2023, shipping companies redirected vessels around Africa to stand in solidarity with Palestinians in Gaza. Maersk confirmed its MECL service connecting the Middle East, India, and the U.S. east coast will resume the Suez route, starting January 26 from Oman's port of Salalah. The decision follows improved stability in the region, according to Maersk.

The Suez Canal, a critical route facilitating about 10% of global seaborne trade pre-Houthi attacks, remains a vital Asia-Europe trading corridor. While Maersk plans a gradual return, German shipping company Hapag-Lloyd has not altered its Red Sea operations but acknowledges the situation may change as Maersk progresses. The ceasefire in Gaza continues to raise hopes for the normalization of Red Sea traffic.

(With inputs from agencies.)